Currently, the global military shipbuilding and submarines market is valued at US$16.4 billion and is expected to grow to US$18.2 billion by 2021. The United States is the largest market for submarines and other naval vessels, accounting for approximately 47% of the total market. Other major markets for submarines include the European nations, which are expected to spend a combined US$46.3 billion across the forecast period. The United States has been a strong market participant, spending heavily on submarines and other naval vessels to project its power abroad, protect its trade lanes, and defend its allies.
The Global Military Shipbuilding and Submarines Market is driven by a rise in defense spending
With governments in countries such as China and Saudi Arabia expected to boost their budgets by double digits by 2015. The growth in demand for these ships is attributed to the increasing national defense, as well as the allocation of massive budgets by various governments. However, increasing government regulations are limiting the growth of this market.
This report analyzes the global submarine market from a comprehensive standpoint and provides detailed country and sub-sector forecasts. It also covers key technological trends and challenges faced by industry participants. It provides a detailed overview of the submarine market through 2011 and provides detailed information about the spending patterns in the different regions. Further, the report examines the competitive landscape and the role of private and government firms in this industry.
The Global Military Shipbuilding and Submarines market is projected to grow at a slow pace for the next five years. However, the industry will grow by an average of X% annually in the next 2-3 decades. As the global economy recovers, the defense budgets of western nations will grow, and spending on industry products is expected to benefit from this. Additionally, the industry has long lead times and a growing pool of skilled labor. This means that defense cuts won’t be as severe as they would have been previously.
China has a growing navy, and the Chinese navy is becoming a larger force.
In 2010, seventy percent of the PLAN’s ships were classified as “modern.” And the country is building larger and more powerful naval vessels. For example, the Chinese Type 055 cruisers are due to enter service in 2019, disavowing 4,000 to 5,000 tons more than the Chinese Type 052D destroyer. The type 055 cruisers also carry 112 vertical launch system missile cells and are capable of escorting aircraft carriers.
The DCN, formerly known as the Direction des Constructions Navales, was originally a small administrative department within the Ministry of Defence. In 1999, DCN was elevated to a state-owned company with national authority, reporting directly to the Ministry of Defence. In 2003, the French government changed the DCN into a private limited company, and DCN International was created to help promote its activities internationally.